Turning to Slide 7. I'd like to give an update on our overseas initiatives in Japan and Australia. Starting with Japan. We're seeing an increase in business development activity and are working hand-in-hand with our partner there, Mitsui Engineering & Shipbuilding. We've already conducted engineering in connection with initiatives to develop a new mooring system for our PowerBuoys customized for wave power stations off Japan, and have also performed tests at Mitsui's wave tank facilities. Our relationship with Mitsui is expected to provide the basis for the development of a commercial scale OPT wave power station in Japan, which would be conducted in stages. These phases would commence with site development and planning work, progress to a technology demonstration and proceed to a power station with an initial capacity of several megawatts, scalable to 10 megawatts or more.
The Japanese government remains very interested in our technology given the impact of this year's earthquake and tsunami, and we are optimistic that we will be able to report progress here in 2012.
With regard to Australia, it is important to note that the Australian government passed a new Carbon Tax Law in November. The initial carbon price is set at $23 per ton. Revenue from this tax will fund $10 billion for investment in renewable energy, low pollution and energy efficiency technologies; another $3.2 billion to fund R&D, demonstration and commercialization of renewable energy; and $200 million to support business development of clean technologies. We believe this development will provide added momentum to the special-purpose company, Victorian Wave Partners, or VWP, or VWP, formed by Leighton Contractors. VWP was awarded the AUD 66 million grant by the Commonwealth the government for the purpose of building a 19-megawatt wave power station using OPT PowerBuoys. This project is expected to be off the coast of Victoria, providing enough energy to power up to 10,000 homes. We continue to explore strategic alternatives that could expedite